OPEC one phone call away from meeting oil demand: Al Mazrouei

Dubai: The OPEC is just one phone call away from meeting rising oil demand in the future, said Suhail Mohamed Al Mazrouei, UAE’s Minister of Energy and Infrastructure.

“We have a mechanism to get together if the requirements are met,” he said. “But this technical organisation is always going to stay as the trusted organisation making decisions and doing its best to balance supply and demand.”

Al Mazrouei emphasised that OPEC (Organisation of the Petroleum Exporting Countries) is committed to meeting requirements the way it has done so many times in the past, assuring the UAE and OPEC members are keen on supplying the world ‘whatever the requirement is’.

He emphasised that the UAE, in collaboration with OPEC+, is keen to strengthen balance between supply and demand in the global oil market.

“The UAE has stepped up its efforts to secure energy supplies for the world, as we have a clear strategy to diversify sources of energy and increase dependence on the clean ones,” Al Mazrouei said.

Last month, the OPEC+ agreed to cut its collective output limit by two million barrels per day – it biggest reduction since 2020 -- to halt a slide in oil prices caused by the weakening global economy.

“We are producing less than 50 per cent of what is produced,” said Al Mazrouei. “And there are others who need to do their part in investing as we need it now more than ever to complement the role of renewable energy that the world is facing.”

Last year, OPEC saw oil demand reaching 108.2 million barrels per day in 2045, up from 90.6 million bpd in 2020. The group steadily lowered the 2045 projection over the last few years, citing changes to consumer behaviour brought about by the pandemic and competition from electric cars.

“The challenge that the world is facing is more than just oil,” the minister said. “We need to look at the gas and the whole spectrum of energy.”

He stressed that countries must focus on ensuring that they have enough renewable energy in the form of hydrogen and others. Al Mazrouei reassured that the UAE was doing everything it could to supply oil. “We are focused on diversifying the energy sources and we are focused on reducing our emissions,” said Al Mazrouei. “Reducing consumption is as important as reducing emissions.”

The minister also underlined the UAE’s eagerness to achieve the utmost efficiency and effectiveness in the energy sector in parallel with the country’s efforts to reduce carbon footprint and consumption.

“The energy sector needs pumping of more investment to meet the growing demand,” he added.